Operation Management and Services

This document provides a comprehensive study material on operation management and services. It includes topics such as comparative analysis, performance objectives, design analysis, and more. The document also discusses the capabilities and challenges faced by Starbucks in managing their operations.

Operation management and services.

Table of Contents
PART A...........................................................................................................................................3
Comparative four Vs analysis.....................................................................................................3
Comparative performance objectives analysis............................................................................5
Design analysis............................................................................................................................8
PART B............................................................................................................................................9
Overview.....................................................................................................................................9
Starbucks global operations strategy and factors related to macro environment........................9
Capabilities and Challenges faced by Starbucks.......................................................................10
Analysis and Evaluation of the operation areas........................................................................11
Recommendation.......................................................................................................................12
Conclusion.................................................................................................................................13
REFERENCES..............................................................................................................................15

PART A
Comparative four Vs analysis.
The four Vs of operational management are concerns with the volume, variety, variation
and visibility. All the operations are had on common thing they all are take their inputs like the
raw material, knowledge, capital and time or transform them into the outputs (Atzori, Shapoval
and Murphy, 2018). The four Vs analysis of Starbucks and Greggs are as follows:
This diagram is considers with the Four basic elements which are more important and
effective for both companies which explanation are as follows:
Illustration 1: Four Vs analysis
(Source: The 4 V’s of Big Data, 2017)

 Volume: this is the main characteristics of big data analysis volume. This refers to how
much of specific product is required to satisfy its demand. Variety: This is highly related with the variety of goods and services to be produced by
company and sold to customers (Chatterji and Toffel, 2015). Variation: This refers with the level of demand changes over a time period due to the
external factors.
 Visibility: This refers the process of company which is used at the time of production
process and does the customers actually experience. This is very important to visible in
the manufacturing company.
Four Vs Starbucks Greggs
Image
Volume Strong global presences of company in
the market place and this creates more
effectiveness for company. The
company is also had a special flavours
and quality of coffee which create high
competitive advantage for company.
The company have high repeatability
of products. This creates higher
volume for company. On the other
side, this has high unit cost which
creates lower volume for company.
Variety The company is sales different variety
of products and services to its
customers like espresso roast, Decaf
Espresso, French, Italian roast, pike
place roast. Those are the variety of
Starbucks (Haksever and Render,
2017). They are also provided the best
The company is also have different
variety of products and services which
are help to satisfied needs of customers
in effective manner. The variety of
Greggs are milk chocolate ring Doug
hunt, sugar strand, iced ring and others
which are help to attract more

and effective services to their
customers like fast delivery services
and online bookings services.
customers towards business.
Variation The company have higher number of
customers base who are always ready
to purchase products from company.
Their strawberry cupcakes are liked by
each and every people and but at the
S$7.90 for a tall size cups, the drink
turned out to be a bit of a diluted milk
is alike tastes. This gives more
effectiveness for company.
The company have ample number of
viewers on Twitter and Facebook.
They are achieved and get notification
updates about the work and company
profile (Hitt, Xu and Carnes, 2016).
This creates more effectiveness for
company.
Visibility Visibility of Starbucks company is
main concerns with bio free production
process. This always creates very good
taste of products and services in an
effective manner.
The company visibility about
producing products, and they made
products with very hygienic process.
This creates more effectiveness to
maintain their growth factors.
Those are the main difference between Four Vs of Starbucks and Greggs. This creates
more effectiveness for business in order to manage growth of firm.
Comparative performance objectives analysis.
Performance is another important aspects which is highly helpful for manage work in
effective manner. Here is analysis the current performance of company at the marketplace, for
that this section is include Polar diagram which completely reflects on performance of Starbucks
company are as follows:

The analysis and its findings are creates more effectiveness for business to manage their
work effectively by creating more growth factors. The purpose of this analysis of Starbucks
customers respond to an offer whether the BOGO and discount. This is also helped to get
knowledge about operation performance of Starbucks as compare with Greggs. There are
different current operations of Starbucks and it compares with Greggs are as follows:
Quality management:
Quality management is important and effective part of company. This creates more
effectiveness for company to manage their current performance as well as analysis of
performance. The main objective of quality management in Starbucks is to provide a better
quality of coffee to customers by satisfying needs of customers. Quality management is includes
in current operation performance in company by using the premium character in quality
management. In that company is carefully sources its coffee beans (Johnston, 2017). As compare
with Greggs, company have also maintained their quality of products and services in order to
attract more customers towards company. They also make great quality of bakery products
ourselves and love to create new things.
Illustration 2: Polar diagram of Starbucks
(source: Starbucks: Analyze-a-Coffee, 2019)

Human resource management:
Human resource management is very important and effective aspects which creates more
effectiveness for business. The main objectives of this operation for Starbucks to hire eligible
employees and make focus on ensuring that Starbucks culture is woven into every job, while
satisfying basics on technical specification of tasks (Starbucks Coffee’s Operations Management,
2018). This creates opportunity for company to gain higher competitive advantage by managing
effective performance within the market place. On the other side, main objectives of human
resource management of Greggs is to follow best and innovative presentation by using talent of
employees. They are provide customers with fast and friendly services, fixing issue without a
fuss and enjoy making every day a great day by rewarding them for their loyalty.
Supply chain management:
The supply chain management is another important and effective aspects which creates
effectiveness for business by delivering products and services on time. Starbucks coffee supply
chain is a global, although majority of the company coffee beans come from farmers in
developing countries. The main objective of supply chain management Starbucks is to
diversification of supplier to ensure stability of supply (Mason, Cole and Goza, 2017). This is the
main responsibility of company to deliver their products on time to customers. In context of
Greggs, objective of supply chain management is to looking for ways to be more efficient and to
minimize our impact on the environment, while supporting shop growth. This help to Greggs to
manage their performance at market place.
Design strategy:
Design is most important think where company needs to take decision for improve their
presentations needs. This creates more effectiveness for attracting more customers towards
company in effective manner. The main objective of this strategy is to support a warm and
friendly ambiance to match the company culture. This does not make and maximize space
utilization for tables and seats because company make focus is on their premium customers and
their experience this involves the higher price of product for more leg space in the cafes. On the
other side, Greggs have great strategy in that they need to make higher growth for company by
managing those in effective manner (Greggs strategy, 2018). This design the great support team
who are completely responsible for manage this strategy in effective manner.

Those are very important and effective current operations where both the companies well
by creating effective and higher profit margin for company.
Design analysis.
Design analysis is very important part of the company which affect to customers and
layout because both the companies have their different locations. In that case companies need to
manage their performance in effective manner by manage work of both the companies Starbucks
and Greggs are as follows:
Impact of customer services process on design:
Customer services are impact on design of company because customers have their own
demand and needs or company have to satisfying them in effective manner. This affect to design
and structure of company (Mayer, 2018). Starbucks and Greggs both are design their services
properly but most of the time demands of customers are different which are not designed before.
In that services are delayed and make changes in respective manner. On the other side, as per
four Vs analysis and performance operations of company not address the needs of customers.
Like customer come and order but this particular product is not available in the restaurant. Then
customers is demotivated and creates issues for business. This is not good for company and for
its growth factor. In this company need to provide a cross channels, seamless and great
experience for company and its needs. In that company need to take feedbacks from customers.
Impact of store layout and flow on design:
Both the companies like Starbucks and Greggs have different and various layout which
affect design of Four Vs analysis and performance operation management. This is not good for
company to manage their design of work. The company different location at their they deal in
that not possible to manage human resources and supply chain and services are delayed (Noe and
et.al., 2017). The products transfer one place to another place is also delayed with the store
layout and flow. As per that store layout and flow in impact to design of both companies in
negative manner. This impact to operation of company like facilities of layout design and
process layout.
This impact is not good for company because this can be give negative impact on
companies growth and profit margin. In this company need to make possible strategy to meet
needs and wants of customer and protect form those impacts.

PART B
Overview
In respect of Starbucks, the major operation management through which the dignity of
the Starbucks is maintained is relating to quality management of the products which they are
serving. Quality management is to be undertaken in relation to carrying the customer satisfaction
regarding attaining to particular products or the services which the customer are expecting when
they visit the Starbucks stores (Mason, Cole and Goza, 2017). The scope of Quality management
is to ensure that customer needs are satisfied after pertaining to the products of Starbucks and
also examines that all 30,000 stores are maintaining the set quality to serve the customer with the
best quality services. Starbucks is using the Quality management in respect of appointing the
company named ECOSURE who assign duty to inspect the quality check in every six months in
all stores of Starbucks. Thus, company usually maintain its core competencies regarding
checking and controlling the national and international stores which is located worldwide.
Starbucks global operations strategy and factors related to macro environment
The major strategy which the Starbucks is carrying is relating to managing the greater
return on investment regarding the services which the Starbucks is providing globally. In relation
to undertaking the quality management operation, they carry the Arabia premium coffee beans
which is rarely available in market and also it is different from other Arabic coffee beans
(Sholihah and et.al., 2016). Thus, the strategy which the Starbucks is carrying is relating to
targeting the market regarding providing the coffee as per customer taste and demands
(Starbucks coffee PESTLE analysis/Recommendation, 2019). In context of quality management
operation in Starbucks, the matters which influences the external working factors is relating to:
 Political factors: As the influences in smooth working of the Starbucks is affected
through intervention in government norms. As Starbucks appointed the ECOSURE
company to check the quality of the products by verifying every store of the Starbucks
globally. Thus, changes in government policies, restrict company to enter into their
country for any type of verification.
 Economic factors: This influences the quality management in relation to decreasing in
employment ratio. As every country had their own economy which they imposed upon
companies to manage their profitability in better way (Ivanov, Tsipoulanidis and

Schönberger, 2017). Thus, in such manner by franchising the Starbucks business results
in decreasing the employment to manage quality of the products in right manner.
 Social factors: The influences in working arise in respect of changes in taste of the
customer. Thus, through this manner the quality is fluctuated regarding designing the
products according to the customer needs.
 Technological factors: The influences occurs in relation to preferring the coffee from
digital platforms. As the quality fluctuates in context of ordering the coffee of the
Starbucks through online but not get the similar taste as that of which is available in
stores.
 Legal factors: The impact arises in context of applying employment laws on workers in
respect of attaining task in right manner (Taha and Ng, 2019). Thus, quality management
is affected in relation to facing lot of employment laws at work place such as safety
issues, heath factors norms and many more.
 Environmental factors: Quality is affected in respect of changes in environment
condition. Thus issues is faced regarding not getting the right coffee beans which is used
in preparing the coffee in Starbucks.
Capabilities and Challenges faced by Starbucks
The capabilities which the Starbucks is applying in relation to quality management is
relating to carrying they renowned brand image in market and through providing the high quality
products and building the strong customer loyalty. Thus, in respect of undertaking the capability
of the Starbucks through adapting the quality management it is examined as they carry their own
farms which produce the premium coffee beans which is used by Starbucks in preparing the
coffee (AlMaian and et.al., 2015). It interprets the capability which the Starbucks is carrying in
respect of managing the quality management is people as through this guidance and feedback, it
helps Starbucks to bring changes in their exiting products or services. Training and development
also play the major role in examining the capabilities of the Starbucks regarding guiding the
employees in right path. As they manage the financial capability in better way, thus recruit the
right person to attin such task in better procedure.
The challenges which is incurred by Starbucks in context of quality management is that
1)The premium coffee beans which is used by Starbucks carry high pricing, thus lot of expenses
had to bear by the Starbucks in respect of managing day to day orders of customer.

2) As in respect of managing the quality of the Starbucks products, it results in facing issues in
respect of recruiting the right person who can handle the multiple work in single movements
(Wu, 2017). As Starbucks are operating in around 30, 000 places thus it is necessary the quality
must be controlled in all such places. Thus, right person are recruited to manage the day to day
operation in better way.
3) The another issues which is faced by Starbucks is relating to imitating the products or taste of
the coffee by their competitors business. As Starbucks mainly focused on providing the high
quality products with high pricing which results in not infringing their patents coffee taste or
design (Atzori, Shapoval and Murphy, 2018). But most of the coffee shop are imitating the taste
of the Starbucks in respect of attracting the customer towards the business. Thus, it results in
facing challenges in retaining the customer towards the business for longer way.
Analysis and Evaluation of the operation areas
Resources in Starbucks are relating to both tangible and intangible things. Tangible
things refers to the equipments, materials or inventories which is used in serving the coffee to the
customers while in respect of intangible things it refers to the time and people (Garthwaite and
et.al., 2017). Thus, these both are important in relation to retaining the dignity of the business in
global market. In case of Starbucks they are carrying the accurate planning regarding using such
resources in right manner (4 Things we've learned from Starbucks, The queen of quality control,
2019). In respect of undertaking the quality management operation in Starbucks they are
managing such quality in respect of applying the EOQ systems which is used in selecting the
materials in which the coffee cups, milk or other ingredients are used to produce the coffee.
Thus, in such manner, management of resources is to be undertaken regarding taking care
of the minute things which is used by Starbucks in producing the coffee. Resources are managed
through recruiting the trained and skilled person to handle such task in right manner or IT person
to adapt the appropriate use of technology or financial resources are also examined in respect of
setting the appropriate budgets to target particular market segments.
The impact of resources which reflects the Starbucks operation performances is that:
 Setting time: As appropriate time is set regarding attaining the particular task thus, the
impact through resources occurs in respect of not managing day to day operation. This
affects the Starbucks working is respect of not saving wastages in producing the
particular products (Lin, 2019).

 Advancement in technology: As due to continuous up gradation of technology, it also
affects the performance of the Starbucks through not tracking the appropriate record
regarding the use of inventories (Alwaleed and et.al., 2019). Thus, quality is affected in
respect of not keeping records regarding managing the inventories that is used in
preparing the coffee.
 The impact on performances occurs in respect of not setting the benchmarking regarding
the achieving the targets. As in respect of improving the quality of the employees which
indirectly improve the quality of the services which is provided by company to customer.
Thus, it results in causing impact in respect of not getting accurate motivation and
guidance regarding attaining the task in right manner.
In respect of managing the area of the resource which is undertaken in Starbucks is
relating to applying the theories of the quality management, which is related to applying the
continuous improvement theory (Kanokworapan, Borirakphusit and Punnakitikasem, 2017). As
in this theory, it indicates that continuous improvement is to be made on particular services
which helps in retaining the large base of customers. In case of Starbucks, this theory can be
applied in case of improving the taste of the customer through brining new taste and flavours in
coffee. As this attract the customer interest regarding availing the coffee of the Starbucks.
They must carry the effective tools to manage the quality control while promoting the
services in global market. This indicates that by applying the check list procedure through which
they check the list or items which is order from supplier or deliver to buyer within the particular
time limits (Gupta, Nagpal and Malik, 2018). This helps Starbucks in respect of tracking the
records of the areas where the improvement is most needs and also the demands is decreasing
due to less preferences of the particular products.
Through applying this theory and tools of quality management to overcome from the
challenges is relating to carrying the check list regrading setting the particular time for particular
activities (Lemus and et.al., 2015). Through this manner, it manages the quality of the products
in right manner and also helps people to set the time to recheck the quality within the particular
time limit.
Recommendation
The improvement which the Starbucks had to attained in respect of improving the quality
management is relating to:

 Automated technology systems is to be imposed in Starbucks stores so that they can track
the records of the raw material, inventories and customer order details in better way.
Through these aspects the risk also reduces in respect of infringement of any data or
detail of any customer and also the accurate information is to be gathered from this
perspective.
 In respect of providing training to employees regarding proving new and innovative ideas
in the Starbucks products. This can be attained in respect of conducting the out courses
training through which they meet people and gather their reviews regarding the taste
which they needed in coffee (Devia, Aisjah and Puspaningrum, 2018). As every person
had their own perspective of presenting the ideas and also guide them in different way.
Thus, through training, it helps staff members to redesign the existing products to some
new products to retain the customer needs towards the products for longer way.
 Resource management software is to be enhanced in respect of managing the overall
performance in the Starbucks. Through these aspects they manage the resources in better
way and also plan the scheduling regarding dealing in certain activities such as
scheduling the deadline regarding attaining the particular task. As through this manner it
helps employees to work according to the set direction and also had to provide the quality
work within the stipulated time limit.
 Quality is to be managed in respect of saving cost and also motivates employees to reuse
the waste products so that they can manage the quality of the coffee for longer time
period. As the Starbucks coffee is prepared from the premium coffee beans which is
rarely available and also carries costly to manage such beans for longer way (Ryals,
2017). Thus, it is necessary that quantity and quality is to be maintained regarding saving
the raw materials so that cost must be saved for future perspective as well.
Conclusion
From the above report, the study concludes that Starbucks is the coffee house chain
which carries the business in around 30,000 places and also undertaking various effective
strategies to retain the position in market for longer way. In respect of global operation strategy
they mainly choose to build the customer loyalty through providing the quality coffee with set
competitors pricing strategy. Through choosing the quality management operations in Starbucks,
they appoint the ECOSURE company to manage the overall Starbucks business which is located

in around 30,000 places in every six months. They carry the check list through which they
manage they resources and other important activities in better way. As Starbucks mainly use the
P systems to order their coffee beans which is Arabic and rarely available at any places. They
also carry the EOQ systems which is useful in managing the investors which is adapted by
Starbucks to save cost in right manner.

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